An asset is something that adds value to your financial situation. A liability detracts from your financial stability. Your liability may be someone Else’s asset! The loan you pay every month for your house is your banker’s asset. If your home grows in value, it is an asset for you also, provided you continue to protect that investment by maintaining it, making your loan payments, taxes, etc.
Imagine controlling the rights to a house that you have just improved in value by renovating it. Or a horse that just won a big race, or a business that just helped a client double their bottom line. As the asset grows in value, you will need to harvest your “profits” if you are to benefit. Many people saw terrific gains in “paper profits” in the stock market, only to see these gains evaporate. If one of your “businesses” is CEO of your own Trading/Investing portfolio, you need to continue to get better at managing it.
Understanding the fluctuating nature of life is important. Today’s asset may be tomorrow’s liability. Decide, as best you can, when is the best time to capitalize on your asset(s). The experts offer some excellent advice for us: “Cash to Assets to Cash.” Then repeat the process!
Positioning your business to be in front of a significant growth wave is a reliable technique that will propel your business with rocket fuel. Baby boomers, because of their relative size of the population, have become a target for professional marketers. You also would be wise to target them if you are looking for a shortcut to riches.